Microsoft may be the only Magnificent Seven stock to make this month's list of new buys by the best mutual funds. But Nvidia, Meta Platforms and Amazon.com are the only three Mag 7 names currently on IBD Leaderboard. And as Nvidia remains extended, Meta and Amazon stock are testing the upper limits of their buy ranges.
Amazon Stock Teases 200 After Topping $2 Trillion
Last month, Amazon earned membership in the $2 trillion club. Now only trailing Microsoft, Apple and Nvidia — all with valuations north of $3 trillion — Amazon stock is has a current value around $2.07 trillion. Meta stock stands at $1.34 trillion.
Amazon joined IBD Leaderboard as it cleared a flat base toward the end of June. The entry was 191.70, with the buy range extending to 201.29. After rising early Monday, shares of AMZN slipped off the day's highs to close just under the 200 mark at 199.23.
Note the flat base is second-stage. Such early stage consolidations are more likely to spur solid climbs than later-stage patterns. Plus, the relative strength line is bending higher, a positive sign of rising market leadership. Amazon stock sports a 1.2 up/down volume ratio and a B- Accumulation/Distribution Rating. Both metrics point to demand.
Amazon earns a strong 95 Composite Rating, meaning it is outpacing 95% of all stocks in terms of key stock-picking factors.
A sharp turnaround in the e-commerce and cloud giant's fundamentals in recent quarters underlies Amazon's performance. After already posting a string of four quarters showing accelerating growth, Amazon posted a 216% spike in earnings to 98 cents a share in the first quarter.
Amazon is on tap to report second-quarter numbers on July 25. Analysts forecast a 58% gain to $1.03 per share for Amazon stock. For the full year, Wall Street expects a 58% gain to $4.58 a share, followed by a 28% gain to $5.85 per share in 2025.
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Meta Stock Moves Up, Nvidia Finds Support
On Friday, Meta Platforms got raised by a half to a full position in the IBD Leaderboard portfolio. The increase came as Meta stock gapped back up into its buy zone in above-average volume. The social media giant had been floating around a 514.01 buy point after clearing a cup-with-handle entry last month.
Like Amazon stock, Meta briefly climbed beyond buy range early Monday before pulling back. As is the case with Amazon, Meta remains within buy range. Meta stock currently trades 3% above the initial entry.
Meanwhile, Nvidia halted a three-session slide on June 25, finding support at its 21-day exponential moving average. The artificial intelligence powerhouse remains extended after surging on earnings. Nvidia stock stands well clear of the 20%-25% profit zone from a new handle buy point. A 10-for-1 stock split took effect June 10.
Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
